A) Carlos will keep all of the money for himself.
B) Carlos will give all of the money to Darla.
C) Carlos will split the money evenly with Darla.
D) Carlos will split the money,keeping a little more than half for himself.
F) A) and C)
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A) reveals nothing important about economic behavior because the money used is hypothetical.
B) demonstrates that people care about fairness and will sacrifice financially for others.
C) demonstrates nothing definitive about fairness,as concerns about the other player's perceptions will influence the dictator's choices.
D) regularly results in the dictator taking all of the money for him/herself,as economic theory would predict.
F) B) and C)
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A) consumers feel the loss of a price increase more than they feel the loss of buying a smaller package for their money.
B) they don't understand that consumers recognize price increases easily,regardless of what form they take.
C) consumers associate smaller packages with higher quality luxury goods.
D) consumers are generally trying to downsize their purchases and lead simpler lives.
F) None of the above
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A) advertising power is limited because of the inability of firms to change consumers' perspectives.
B) all people will assign the same utility to a given situation,regardless of their previous status quo.
C) whether a new situation is viewed as a gain or a loss depends on one's starting position.
D) firms should never raise prices or reduce wages.
F) None of the above
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B) False
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A) Both believe that people make better decisions when they are given a greater set of options.
B) Behavioral economics focuses on providing more options;neoclassical economics focuses on helping people make more rational decisions with the options available.
C) Neoclassical economics focuses on providing more options;behavioral economics focuses on helping people make better decisions with the options available.
D) Both believe that people are better off with fewer options,allowing them to spend more time calculating the benefits and costs of each available option.
F) None of the above
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A) People have an aversion to losses,and consumers are more likely to feel the loss of a price increase than a quality reduction.
B) Consumers are more tolerant of diminished quality because diminishing marginal utility causes people to get rid of goods sooner than in the past.
C) Firms are myopic in their decision making,with little regard for future profitability.
D) The availability heuristic will cause people to buy whatever is offered,regardless of the quality.
F) A) and B)
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A) take full advantage of the matching contribution because that would maximize his financial well-being.
B) not file the form to start the contribution and match.
C) negotiate with his boss for a higher match in order to increase his returns.
D) only start contributions if the retirement portfolio is heavily weighted in high-return assets.
F) B) and C)
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A) are a rare aberration from rational decision making.
B) are often caused by time inconsistency.
C) can be easily overcome by providing decision makers with better information.
D) occur frequently but have no impact on the ability of neoclassical models to predict economic outcomes.
F) C) and D)
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A) gains are felt more intensely than losses.
B) each successive unit of loss is equal in its marginal disutility.
C) each successive unit of loss hurts,but less than the previous unit.
D) each successive unit of loss hurts,and more than the previous unit.
F) C) and D)
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B) False
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A) help people overcome their self-control problems caused by time inconsistency.
B) do not fundamentally alter decisions because they do not change the benefits or costs of a particular action.
C) end up being more costly as people regularly violate them and incur penalties.
D) overcome cognitive biases introduced by brain System 2.
F) All of the above
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B) False
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B) False
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A) Firms have substantially cut their advertising budgets to focus more on product quality.
B) Firms have substantially increased their advertising budgets in order to hit the spending threshold necessary to impact sales.
C) Firms have substantially cut their advertising budgets to focus more on new product development.
D) Firms have conducted a lot of simple experiments to determine what might increase sales.
F) B) and D)
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D
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A) Getting people to make positive behavioral changes is about putting them in situations where heuristics kick in and lead them to the desired outcome.
B) Getting people to make better decisions is simply a matter of providing more information and more options.
C) People who know and understand hardwired tendencies of others can take advantage of situations.
D) Even when confronted with irrefutable information that a behavior is detrimental,people still may not change what they're doing.
F) None of the above
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B
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B) False
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A) are generally viewed as complementary,together providing better understanding of economic behavior than each could on its own.
B) are diametrically opposed to each other.
C) generally address different issues in economics,and therefore rarely intersect on the same topic.
D) both start from the premise that people are fundamentally rational in their decision making.
F) A) and D)
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B) False
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False
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A) contradicts the view that people are narrowly self-interested.
B) appears unselfish but in fact is driven by self-interest.
C) results from an ability to accurately calculate benefits and costs.
D) is done solely to receive the utility from public recognition.
F) None of the above
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